Very well, I will give you the benefit of the doubt one last time.

I don’t know what backups you’re talking about

On an iPhone, Settings -> Apple Account -> iCloud -> iCloud Backup -> Back Up This iPhone.

backing up the entire device and everything that’s on it including all the apps?

That’s not how it works. App binaries are not backed up as part of this. Neither are photos if they’re already backed up as part of iCloud Photos (though still part of iCloud).

One of the major advantages of using this kind of backup is that I never worry that I’m going to be without my access to my bank. Even if my phone is lost or stolen, worse comes to worse I can restore the backup on a new phone and all encryption keys, biometrics authorisations, OTP, etc. are restored with it.

On the other hand, I have ways to store all the photos, videos, music, texts, and any other things like that which might need backing up and can’t just be re-downloaded from the app store.

“I have ways” is not the same as there being an iCloud alternative. You may have ways. Does the average user, without having to go through hoops and likely getting lost in the process? That’s what an iCloud alternative has to look like to be an actual alternative.

I agree, if you’re using something like Logic, paying for iCloud makes sense right now even if it is overpriced and unnecessary.

This last point alone shows how much you don’t seem to understand what the problem statement is. Using iCloud may be unnecessary, but that was never under discussion. Of course, no one needs automatic and transparent syncing between devices. The point is that if you want that feature and you’re using an Apple device, your only alternative is locked down to what Apple offers.

That is what it means to not exist an alternative to iCloud.

I hope this helps clarify. If you are going to respond, please keep this last point in mind as that’s the part that’s important.